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Lakdawalla, Darius - 2007

This paper analyzes the normative role for civil liability in aligning terrorism precaution incentives, when the … perpetrators of terrorism are unreachable by courts or regulators. We consider the strategic interaction among targets, subsidiary … targets of terrorism, coupled with direct compensation to victims of terrorist attacks …

Persistent link: https://www.econbiz.de/10012778272

Cognitive Economics

Kimball, Miles S. - 2015

Welfare Economics. A key theme of Cognitive Economics is finite cognition (often misleadingly called “bounded rationality …

Persistent link: https://www.econbiz.de/10013030618

Learning and Disagreement in an Uncertain World

Acemoglu, Daron - 2010

Most economic analyses presume that there are limited differences in the prior beliefs of individuals, as assumption most often justified by the argument that sufficient common experiences and observations will eliminate disagreements. We investigate this claim using a simple model of Bayesian...

Persistent link: https://www.econbiz.de/10012760581

Do Voters Vote Sincerely?

Degan, Arianna - 2007

In this paper we address the following question: To what extent is the hypothesis that voters vote sincerely testable or falsifiable? We show that using data only on how individuals vote in a single election, the hypothesis that voters vote sincerely is irrefutable, regardless of the number of...

Persistent link: https://www.econbiz.de/10012777605

Neighborhood-Based Information Costs

Hébert, Benjamin; Woodford, Michael - 2022

We derive a new cost of information in rational inattention problems, the neighborhood-based cost functions, starting from the observation that many settings involve exogenous states with a topological structure. These cost functions are uniformly posterior-separable and capture notions of...

Persistent link: https://www.econbiz.de/10013314321

Rational Heuristics? Expectations and Behaviors in Evolving Economies with Heterogeneous Interacting Agents

Dosi, Giovanni; Napoletano, Mauro; Roventini, Andrea; … - 2022

We analyze the individual and macroeconomic impacts of heterogeneous expectations and action rules within an agent-based model populated by heterogeneous, interacting firms. Agents have to cope with a complex evolving economy characterized by deep uncertainty resulting from technical change,...

Persistent link: https://www.econbiz.de/10013307859

Risk Preferences in Small and Large Stakes : Evidence from Insurance Contract Decisions

Collier, Benjamin - 2017

We examine risk preferences using the flood insurance decisions of over 100,000 households. In each contract, households make a small stakes decision, the deductible, and a large stakes one, the coverage limit. Over 94 percent of household choose one of the two lowest deductibles out of six...

Persistent link: https://www.econbiz.de/10012951852

Comparison Utility in a Growth Model

Carroll, Chris; Overland, Jody R.; Weil, David N. - 2021

This paper compares the dynamics of two general equilibrium models of endogenous growth in which agents have comparison utility.' In the inward-looking' economy, individuals care about how their consumption in the current period compares to their own consumption in the past (one way to describe...

Persistent link: https://www.econbiz.de/10013233857

On the Disutility and Discounting of Imprisonment and the Theory of Deterrence

Polinsky, Alan Mitchell; Shavell, Steven - 2021

This article studies the implications for the theory of deterrence of (a) the manner in" which individuals' disutility from imprisonment varies with the length of the imprisonment" term; and (b) discounting of the future disutility and future public costs of imprisonment. Two" questions are...

Persistent link: https://www.econbiz.de/10013216855

The Political Economy of Warfare

Glaeser, Edward L. - 2007

Warfare is enormously destructive, and yet countries regularly initiate armed conflict against one another. Even more surprisingly, wars are often quite popular with citizens who stand to gain little materially and may lose much more. This paper presents a model of warfare as the result of...

Persistent link: https://www.econbiz.de/10012778156